Great American Insurance Company v. Pilot Travel Centers, LLC

This appeal arises out of a negligence lawsuit. TLD Logistics Services, Inc. (“TLD”), an interstate common carrier, sued Pilot Travel Centers, LLC (“Pilot”) in the Chancery Court for Knox County (“the Trial Court”). TLD was a customer of Comdata Network, Inc. (“Comdata”), and Pilot was a Comdata vendor. Upon request from TLD, Comdata issued codes for the creation of Comcheks, negotiable draft instruments TLD used to pay workers. Pilot would print and deliver the Comcheks. TLD alleged that Pilot breached its duty of care by failing to ascertain whether Comchek payees were legitimate, thus causing TLD monetary loss when a rogue TLD employee fraudulently caused numerous Comcheks to be issued that were negotiated by Pilot. Pilot filed a motion for summary judgment. Pilot argued in its motion that TLD should have kept better internal safeguards to prevent what happened with its employee, and that TLD was 50% or more at fault in this matter. The Trial Court granted Pilot’s motion for summary judgment. Great American Insurance Company (“Great American”), subrogee of TLD and substituted as plaintiff mid-proceedings below, appeals to this Court. We hold that reasonable minds could disagree as to whether TLD was 50% or more at fault. We reverse the judgment of the Trial Court, and remand for further proceedings consistent with this Opinion.